Contract Type III (A La Carte)
Award Basis - Management Service Fee
The contract must be awarded on a fixed management fee basis. The FSMC cannot receive payment from the SFA for the cost plus a percentage of the cost, or a percentage of the income from the program.
The Type III contract is awarded based on an annual management service fee or a per meal management fee. The management fee is defined as all other costs, except, food, labor, and miscellaneous expenses as defined below. The management fee is the only source of profit for the FSMC.
When using a Type III contract, the Department's Office of Counsel has ruled that the Governing Board of the SFA must purchase all food and non-food items in accordance with General Municipal Law §103 and Part 114 of the Regulations of the Commissioner of Education (8 NYCRR Part 114). Competitive bidding for all food and non-food items is a way of confirming that the FSMC takes advantage of the best price the marketplace has to offer.
- The SFA must advertise bids in the official paper, or newspaper with general circulation in the community.
- The SFA must open and read bids in the place and time advertised.
- The FSMC can submit a bid to supply any food or non-food item.
The SFA must indicate food service management bids will be accepted on either an annual management service fee or a per meal management fee basis, prior to bidding.